Saudi Oil Exports Halted by Yemeni Strikes
Saudi Arabia's oil exports have been significantly impacted by Yemeni strikes on its western coast, causing a major shift in shipping routes and operations.
As a result, exports from Yanbu port are being rerouted through the Suez Canal or Egypt's Sumed pipeline at Ain Sukhna to reduce exposure to strikes. This has led to heightened secrecy around loading operations, with tankers switching off tracking systems to limit the risk of being targeted.
Vortexa analyst George Morris noted that Yanbu loading operations are being conducted under increased secrecy, while Kepler analyst Nohwaya Hin Su stated that around 70% of loading operations along Saudi Arabia's western coast had been halted in recent weeks. She added that shipments from Yanbu loaded after July 23 were carried by vessels without continuous Automatic Identification System (AIS) coverage.
The disruption has resulted in a significant decline in Saudi crude movements, with Vortexa recording flows falling from 2.71 million barrels per day to 2.38 million, and Kepler reporting a steeper decline from 4.04 million to 1.78 million barrels per day. However, analysts caution that this may not necessarily indicate a comparable drop in production.